How Long Does It Take to Save for a Down Payment?

June 18, 2019
piggy bank savings for down payment
Photo: Pixabay/Pefertig

Business Insider looked at the amount of time it takes to save up for a 20% down payment in 12 major U.S. cities.

It found that on the low end, it can take as few as 12 years to save for a down payment on a median-priced home in Columbus, Ohio. On the other end of the spectrum, it would take a household earning Los Angeles’ average annual income 43 years to save up for the down payment on a median-priced home. 

Other cities with long waits for down payments include Honolulu and San Francisco (40 years each), New York City and Miami (36 years each), and San Diego (31 years). 

Unison's 2019 Home Affordability Report uses 2017 and 2018 median household income data from S&P Global to examine how long it takes to save for a 20% down payment in 12 major US cities. The report measured each city's median household income against its median home value and found that on average, it takes median-income earners 14 years to save enough money for a down payment in the US. 

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PB-Financial,PB-Affordable Housing
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